Is Globalization Good?

 

 

IS GLOBALIZATION GOOD? IF SO, GOOD FOR WHOM? WHO ARE ITS STRATEGIC WINNERS AND LOSERS?

 

Introduction:

The study ascertains on the aspect of globalization and its significance in the modern day conditions. It also focuses on the aspects related to who are going to be beneficiaries of globalization and who are the strategic winners and losers in the contemporary world.

Globalization is considered as an emergence of international aspects including societal and economy that are interconnected with each others. In consideration to globalization, there are various opinions of experts.

The globalization could be related to local, national, and regional aspects of the society. It reflects the spatial-temporal form of changes in the society. Thus it is connected to the societal and economical relationships in context of organizations.

Without the consideration of spatial-temporal aspects coherently there is no specific formulation of the term globalization. One of the authors determines globalization as the form of increase in the closeness, shortening of distances and increased communication.

There are some of the fundamental aspects of globalization including trade and transactions, capital movements, investments and migration. For an incremental growth of globalization there is an unconventional need of strategies that could foster the contribution of globalization to the countries in spite of being developed or undeveloped country.

Is Globalization good and its dimensions of changes?

Globalization has started out of the initial wave in the mid of 19th century. This was a result due to increased innovation and embraces the trade policies to ease business activities in order to increase ones sustainability related to individuals, organizations, and countries (Dima, 2016).

For example: innovations included steam engine, telephone, bulb, and machinery among others.The first form of globalization has been concentrated on the stretching of societal, political, economic contexts. It focuses on the intensification in the flow of trade, investment, finance, migration, and culture (Eriksen, 2013).

There is a consistent evolution in the form of communication and transportation at an increased speed that has harnessed the diffusion of ideas, goods, people, capital investments, and intellectual properties. There has been a blurred image in the differentiation of the domestic and international boundaries (Collier, 2013).

 Globalization

[Source: Tănăsescu et al. (2012),”The Role of the International Organisms in the Globalization Process”, In Globalization – Approaches to Diversity]

Cultural differences being limiting to the personal extent and has increased financial markets, connectivity without any borders, increased freedom of individuals and consumers to make their own choices (Dima, 2016).

The organizations across the world are also highly concentrating on expanding their businesses irrespective of the geographical boundaries. Globalization has also increased competition due to shrinkage of the world due to the enhanced connectivity and cross border relationships among the individuals and companies of various industries (Lechner, 2016).

Global development has increased the good governance, global economy, participation of the individuals, environmental sustainability, and multicultural society across various countries.

There has been a tremendous change observed across the world due to the impact of globalization in almost all the sectors and societal sects. In some aspects nations, corporate companies, and individuals has befitted due to its advent and in some aspects they have gained substantial losses (Eriksen, 2013).

This has even generated empirical opportunities that turned to be as a great advantage for the world for development towards equality and wellbeing (Lechner, 2016). Solidarity has also been increased that has increased mutual support and understanding irrespective of the differences between the individuals and groups of individuals.

In the contemporary world many countries are incorporating free trade agreements with each others to increase economy and social stability (Mansbach, 2016). However, the current wave of globalization has emancipated the cross country relationships to a certain extent with a varying degree in each field.

As an aspect of globalization, an increase of competition and corporate wars, there has been a repeated devaluation of the currencies of various nations (Velayutham, 2014).

An initiation by the world trade organization of general agreements for tariffs and trades has became a channel for catalyzing globalization that has substantially decreased trade barriers across the world.

The growth in the world trade for the last two decades 1990-2000 was observed to be 6% (Dunning, 2017). Further as a course of globalization the Uruguay round has enforced an act to secure intellectual property rights and trade services for the claimed innovations and discoveries by individuals and to eliminate corporate wars due to plagiarism.

However, there is an increase in the volatility of the capital flow due to the decreased short term investments (Tehranian, 2014). Those economies across the world that are adjusting themselves due to the financial crises are considering globalization as an evil.

As a part of liberalism in the sense of globalization has its own impact on the individuals and organizations. In the attempt of globalization individuals are making their own choices that are best suiting for their requirements (Stiglitz, 2016).

World trade

Contemporarily for the efficient functioning of the competitive markets and anti competitiveness issues are being addressed significantly. Despite of some of the countries developing nations has existed for this that has led to the special treatment of such countries (Lechner, 2016).

An impact of globalization there was a differential decline in the world poverty in contrast to 1950 being 50% in the world population whereas in 1992 it has been reduced to 24%. Some of the other variables including life expectancy rate, birth rate, and death rate have been considerably brought down due to an increase in the globalization (Lechner, 2016).

This was possible due to the transfer of technology, food, services among others from one country to another. Globalization is a factor that contributes in the fast advancement in the growth of counties and to reduce the poverty in various countries (Heslam, 2016).

This is inclusive of the domestic economy, societal cultures towards well being and political conditions of the developing and underdeveloped nations.

In consideration to globalization, the nations where there is a manifestation of corruption, its legislation is ineffective and the government is corrupt (Tehranian, 2014). This discourages the individuals and corporate companies from taking financial risks due to the prevalence of economic instability and malfunctioning of legal systems.

Such kind of countries is observed to be infertile for the advancement of globalization regardless of numerous efforts taken by governments (Stiglitz, 2016). Thus it becomes vital for the governments of different countries to imbibe preventive measures of corruption and establish political, governance and societal systems that could improvise globalization process.

The misconception on the process of globalization is a wrong perception in the world. For example: the nations that have poor majority such as china and India has even mandated to welcome factors that could decrease poverty in their own nations. As per the official information available, China has observed a fall in the poverty form 37% in 1978 to 5% in 1998 (Stiglitz, 2016).

Globalization for whom? Who are the strategic winners and losers?

Globalization has contrasted against poverty and fortified the losses due to being submissive and overwhelming power of developed nations among the poor countries (Steger, 2015).

It has encouraged the nations that are efficient in skilled labor force, products, and market resources across the world.Despite of its advantages to the countries which are efficient, there is a question raisedwhether it also fosters the growth of undeveloped and developing nations to achieve higher living standards and contribute for the equality in the crowd (O’Meara, 2015).

Despite the anti-globalization, groups have considerably forcing against globalization in various means that has influenced the decisions made by international monitory fund counsel.

Poverty now being a contradictory dimension in the process of globalization there is a need of strategic movements to be taken by the nations to come together for mutual development (Roberts, 2013).There is an essentiality to measure globalization on the scale of poverty elimination and sustainable development regardless of differences among the nations.

In the 1990’s the world was under clichés of downfall of capital markets and per capita income being below the historical average due to various factors (Boulle, 2015). In the year 1997 some of the Asian countries have experienced significant financial crises that prevailed to be fortunate nations in their performance.

These countries include Malaysia and Thailand among others. In contrast to the contradictory statement of globalization being as a setback for the undeveloped nations, countries including India and China are substantially experiencing growth rates in correlation to poverty of their respective countries status (Collier, 2013).

For example: Indian growth rate has doubled since 1980 due to the practice of globalization philosophy for 1.5 to 3.8 % in the last decade. However, it is mainly depended on the countries perseverance towards achieving high living standards (Lechner, 2016).

It is being pragmatic in nature by such nations for applying standards and systems of nations that can foster the growth of nation. In contrast to the nations that has practiced the phenomenon of globalization and non-globalization, the first has observed to be successful in their endeavors of growth (Roberts, 2013).

For example: India and China are the successful nations in the aspect of globalization. Such kind of elimination from povertyis only possible by the countries strategies to make sure for opening up themselves for the world economy.

Globalization has been displaying its importance through elevating from the poverty that is evident in case of nations including Vietnam, Uganda, and Indonesia among others (O’Meara, 2015).

Despite of an uneven development in the economic conditions of various nations, the coastal regions has observed a significant increase in their economic activities and social development.

International trade

[Source: By ‘International Trade and Finance’, March 2014, Available at: http://www.managementguru.net/international-trade-and-finance/]

A wonderful experience could be taken out by the nation’s performance. This could include the advent of China that has almost embraced trade activities that has contributed in the development in a less period (Eriksen, 2013).

The country has invested in the modernization activity without liberating its trade policies. Its capital was invested to purchase machinery and technology that could contribute in the nation’s higher performance.

This has taken a great advantage through foreign trade agreements and capital investments in the trade activities to manufacture its own goods to export them (Lechner, 2016).

This has enabled China to gain strategic advantage in the economy of the world. Despite of its advancement through such measures of being violating economic policies China has not agreed for the foreign investments into their nations.

This is to avoid the flow of capital form their nation to the other who had invested for trading activities. Its pragmatic nature through privatization has provided it with substantial benefits in the world economy (Dima, 2016).

Thus it is not an exception in the case of China rather it was also evident for Taiwan and South Korea. This is due to their practice of unconventional strategies supported in the countries increase their economic position in the world.

These countries have also practiced the free trade agreements and capital investments (Boulle, 2015). Such nations has reduced their financial crises and increased their economic performance. Thus it is evident that poor countries do not have a negative influence due to globalization process (Eriksen, 2013).

It has been suggested by the developed countries to adopt institutional reform to enable developing nations gain their foothold in the world economy. Such reforms had taken a long time to reach current situation for developed nations in the current world (Heslam, 2016).

Poor countries in consideration have a market that has not been exploited until date. This is in the form of workforce which could be taken for advantage to improve the economic conditions of the poor nations (Eriksen, 2013).

Therefore, to gain economic development and sustainability in the global market, developed countries could exhibit growth by the liberalization of economic and trade policies. These unexploited resources of workforce enable poor countries to gain technical knowledge and capital form the foreign nations that could be utilized for the self development (Collier, 2013).

Such kind of relaxation in the trade activities by the developing nations could lead to huge changes in the increase of nation’seconomic development (Dunning, 2017). There are some of the regulations encountered by the developing nations including the import barriers and price restrictions.

In the segment of intellectual property rights, the poor nations are facing challenges due to the presence of high prices for the medical products (Heslam, 2016). From developed countries there has been a significant efforts made in order to bring lows in barriers of trading activities, financial services, capital investments fostered.

Under the scheme of labor flows from the poor nations to the rich countries, there is a chance of securing employability and sustain their wellbeing (Boulle, 2015). The results of such returns from the foreign nations after being working over there will be able to gain experience of operating in manufacturing unit, designing skills, managerial skills and capital through income sources.

This contributes in the poor countries enabling to develop in a fast manner, the political dimensions also support in the import of the goods equally with the immigration of the labor force into developed nations (Collier, 2013).

It is due to the beneficial counterparts being involved in political agenda through the trade and investment activities. By evidence the flow of the labor forces is observed to be inconsistent and consists of barriers in consideration of the developed countries across the globe (Collier, 2013).

There is a beneficial side to the organizations operating in various nations in multilateral trade agreements due to their capability to access the foreign markets to befit the home market.Even the developed nations have liberated labor force immigration due to some of the exceptional cases for pursuance of labor force to gain advantage out of liberation (Dunning, 2017).

For example: crisis in the skilled employees in an industry of a developed nation would liberate immigration restrictions to contribute the nation’s economy through work form developing nations including India and China.

Thus it has been evident that globalization is amicable for the developed nations in contrast to the poor nations (Heslam, 2016). However, globalization process would take considerable time to be supportive and improve the conditions of the poor countries.

Even if there are abundant resources present in the poor nations, multinational organizations of the developed nations would not be willing to invest in such nations due to decrease in the financial benefits among others (Dunning, 2017).

In the process of globalization the strategic winners include developed nations in contrast to the underdeveloped and poor countries. This is due to advanced nation’s power over the policy making capable to manufacturer goods that could be exported at a higher price (Stiglitz, 2016).

It further enables the developed nations to advance in their economic and living standards. Such nations could also be able to put restrictions over the poor countries exporting goods to gain a strategic advantage (Stiglitz, 2016).

Because in due course of time poor nations out of gaining financial benefits they could also gradually decrease the prices and export them to the foreign markets. In spite of being resourceful the poor countries would be relying on the developed nations in order to gain technological advantage and skills that are required to develop themselves to compete in the global platform (Boulle, 2015).

Globalization has its own positive significance in reality, if practiced morally for mutual benefits it could be capable of reducing unemployment and financial crises (Dunning, 2017).

Thus there is variable degree of obstacles present in the world due to misconception and less insights into the process of globalization. It has created a situation where most of the advanced nations are taking advantage over the poor nations when migrated to their nations (Lechner, 2016).

This could be in the form of less pay out of job, export and import restrictions, cultural barriers, and skill gaps. It is necessary to have a strong role of democracy and globalization to go hand in hand for the elevation of the global economy. Thus it must be built with mutual trust and cooperation to eliminate cross country borders and restrictions (Lechner, 2016).

This could be only achieved through the elimination of the colonialist rules and ideology. Significantly countries are gaining advantages from learning the cross cultural aspects to explore more opportunities and gain strategic advantage.

Concentration of developed nations to operate in cross border has increased the tendencies of globalization process (Heslam, 2016). Thus every nation is striving hard to reach the position by developing the market and establish a new market for sustainable development. Due to such attempts the advanced nations are gaining strategic benefits and being as winners among others.

Conclusion:

Globalization creates opportunities and efficiency in the global market. It has promoted effective communications among business people, suppliers and customers worldwide. Globalization always helps a company or a sector to grow. The efficiency of it depends upon how an organization is implemented across world.

There are few factors, which has to be taken care of when expanding the business globally. When those factors are met or implemented successfully, globalization can never be bad to the world.  Few factors to achieve globalization are cross culture understanding, political stability and economic stability. Cultural differences plays vital role in globalization. It has both good and bad impact, because it varies in each country.

An organization that is expanding its wings globally should understand the culture and ethics that the country is following, they cannot make the people of other country to follow the ethics and culture of the country, where the organization has emerged.

Political factors of the country should be taken care of by the organization. Any illegal activities for the sustainability and profitability of the organization should not be done. Economic factors like taxation policies should not be overruled by the organization.

Globalization is good since it offers wide range of employment, opportunities, transport facilities, Business communication, it also have few negative impacts. Globalization is likely to promote commercialism traits.

These days, teen people all over the world are found to follow same life style ranging from eating to dressing up. All these are because of globalization. It had pushed the local products and ideas far back. It has also started spoiling the ethnicity.

People are more interested towards foreign culture than their own culture. This might lead people to forget their ethnicity and if it pursues, the ethnic culture of certain community will be extinct. Resource wastages are constantly increasing in developing countries.

Developed countries are finding developing countries as their globalization destination, because of the availability of huge natural resources. Cost spent on import or export can be utilized for product enhancement. This might result in preserving natural resources.

Globalization is very successful in developing countries like China and India, since they are open to the global economy.  It has enhanced the lifestyle of people; it has helped in declination of poverty ratio.

China has invested in many industries without any deviation from trading policies. This has gained a greater advantage for the country. Since many organizations that are entering china are violating few economic policies, they decline foreign investments in their nations.

Every aspect of globalization has both good and bad impact. Bad impacts can be eradicated if the policies are followed strictly and implementation is taken care of.  Despite of all the bad impacts, globalization has given substantial benefits to many countries.

Success of an organization’s global expansion completely depends how it operates in other countries, how the employees are being treated, how they respect the country’s legal, ethical and cultural policies and how they contribute to nation’s economy.

Globalization, which does not have any negative impact on the country they are operating, is always good.

Bibliography

Boulle, L. (2015). The Law of Globalization: An Introduction (fifth ed.). Kluwer Law International.

Collier, P. (2013). Globalization, Growth, and Poverty: Building an Inclusive World Economy (Third ed.). World Bank Publications.

Dima, N. (2016). A BRIEF STUDY OF GLOBALIZATION: Is Globalization Good for People? (Third ed.). Xlibris Corporation.

Dunning, J. H. (2017). Making Globalization Good: The Moral Challenges of Global Capitalism (First ed.). OUP Oxford.

Eriksen, T. H. (2013). Globalization: The Key Concepts (Fifth ed.). Berg.

Heslam, P. S. (2016). Globalization and the Good (Fifth ed.). Wm. B. Eerdmans Publishing.

Lechner, F. J. (2016). The Globalization Reader (First ed.). John Wiley & Sons,.

Mansbach, R. W. (2016). Introducing Globalization: Analysis and Readings (Third ed.). CQ Press.

O’Meara, P. (2015). Globalization and the Challenges of a New Century: A Reader (Fifth ed.). Indiana University Press.

Roberts, J. T. (2013). The Globalization and Development Reader: Perspectives on Development and Global Change (Third ed.). John Wiley & Sons.

Steger, M. B. (2015). Globalization: A Very Short Introduction (Fifth ed.). Oxford University Press.

Stiglitz, J. E. (2016). Making Globalization Work (Fifth ed.). Penguin.

Tehranian, M. (2014). Globalization and Identity: Cultural Diversity, Religion, and Citizenship (First ed.). Transaction Publishers.

Velayutham, S. (2014). Responding to Globalization: Nation, Culture, and Identity in Singapore (First ed.). Institute of Southeast Asian Studies

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